Definitions
a) Supply Chain
b) Supply Chain Management
a) A global network to deliver products and services, starting from providing raw material to the consumers using an organized flow of information, physical distribution and payment. Includes networks for disposal and recycling.
b) A Network of connected and interdependent organizations mutually and co-operatively working together to control, manage and improve the flow of materials and information from suppliers to end users.
Supply Chain Management
a) Name the 5 activities of the supply chain.
b) What are the goals of SCM?
a) Design, planning, operations, control, monitoring
b) - Value Generation
- Global measurement of performance
- Synchronization of supply and demand
- Effective Deployment of global supply chains
- Establishment of a competitive infrastructure
SCOR Model
a) What does SCOR mean?
b) How is the supply chain inside the SCOR model characterized?
c) What elements are used?
d) Name the 3 hierarchical process levels.
a) Supply Chain Operations Reference: describes business activities
associated with all phases of satisfying customer`s demand.
b) Plan, procurement, production, delivery, redelivery
c) Business process optimization, comparison of performance indicators,
business practices in a coherent reference system
d) 1. Statement of number of supply chains, description of their
performance measurement
2. Definition of the sequence of planning, implementation processes
respectively to material flows
3. Determination of the business processes, orders, permissions,
redeliveries and marketing forecasts
a) Name the steps of the purchasing process and the documents.
b) What is LCCS?
c) What does global separation mean?
a) Define specification
functional specification
Select supplier
supplier selection proposal
Contract agreement
contract
Ordering
order
Expediting
order list
Evaluation follow-up
vendor, balanced scorecard
b) Low cost country sourcing: purchasing of products and services in countries with lower production costs
c) Coordinating and integrating procurement requirements of
worldwide business units
Why is the importance of purchasing and procurement management increasing?
- Purchasing volumes: potential for cost savings through increased
purchasing volume and less in-house production - Material costs: saving 1% material costs compares to an increase in sales
of at least 10% - Reducing the number of suppliers: cost savings of up to 50% through
early involvement of suppliers in the development phase
a) Offshoring: Reasons for relocation and motives for R&D investments abroad
b) Backshoring: Reasons and examples of problems leading to backshoring
Offshoring
Reasons for Relocation R&D investments
Personnel costs
Proximity to market
Flexibility
tax advantages
flexible working hours
less bureaucracy
Backshoring
Reasons Examples
Quality
Coordination costs
R&D centers close to
production
Delayed product deliveries
Frequent power blackouts
Protection money demanded
by Russian mafia
a) What are the megatrends (influenced by business and society)?
b) Definition of logistics.
a) - Globalization of production and material streams
- Differentiation and individualization
- Shortened product-lifecycles
- Demographic change
- I&C technologies
- Shareholder value thinking
- Climate change and environmentalism
b) Management of all activities which facilitate movement and the
coordination of supply and demand.
Describe the development of the modern logistic approach.
- 1970: classical logistics optimization of individual functions
- 1980: Logistics as a cross-functional unit opt. of cross-functional
processes - 1990: Logistics integrates functions in a process chain opt. of process
chain - 1990: Logistics integrates companies in a value chain opt. of value
chain - > 2000: Logistics integrates value chains in a global network opt. of
global networks
Name and describe the four different types of logistics.
- Procurement logistics
Connection between suppliers’ sales logistics or distribution logistics and
production logistics procurement of inexpensive high-quality goods - Production logistics
Planning, management and control of internal transport, handling and
storage processes aligning production with market demand - Distribution logistics
Connection between production and sales of a company provision of
the right goods, at the right time, at the right place and optimal costs - Disposal logistics
Optimal coordination of logistical measures regarding the disposal and
return of waste increased efficiency and reduction of expenses in
compliance with ecological issues & environmental regulations
Classify the four different types of logistics.
Procurement logistics
Raw-,auxiliary-,operating matetials
Production logistics
Semi-finished products
Distribution logistics
Finished products, Spare-parts
Disposal logistics
Residues, package, used parts
Name the tasks of logistics (6 r’s) and the primary goal.
- Right costs
- Right quantity
- Right product
- Right location
- Right time
- Right quality
Primary goal: optimization of logistics efficiency = ratio of systems output to
system input
a) How is the position of logistics and materials management defined?
b) What are the fields of responsibility of logistics within the company?
a) By the
- product structure
- core competence of the company
- contribution of logistics to company profit
- influence of logistics management within the business management
b) - Warehouse management
- Commissioning, packaging, dispatch
- Quality management
- Procurement management
- Disposal management
- Production planning and control systems
- Logistics controlling
- Internal/external transports
Compare the centralized and decentralized organization of logistics.
Centralized
Plant logistics follows the
instructions of central logistics
(from management)
Easier to coordinate
Easier to determine current
stock
Fast implementation of
decisions
Decentralized
Decentralized units (business and
technical management)
compromise subordinated sectors.
Logistic takes place in
subordinated departments e.g.
purchasing, warehousing,
disposal, transport
What are the strategic tasks of logistics as a cross-functional unit?
- Purchasing/Procurement
Long-term contracts, procurement market research - Inventory management
Long-term planning of safety stocks - Internal transport
Design of material flow and packages - Recycling/disposal
Design of disposal systems, identification of substitutes - Further possible strategic tasks
Standardization of material
Equity participation of suppliers
How are conflicts prevented?
- Missing cooperation of individual departments
- Competition within the company
- Fragmentation of logistics activities
4.
-Lack of competitiveness
-Retention of Energies and Costs
-Optimization of individual departments -> No overall supply chain improvements
Name goals of logistics and their conflicts who require trade-offs
- Production
High availability of parts ↔ high capital commitment in stock
High quality ↔ cost savings through standardization of parts - Purchasing
Low cost price, high discounts ↔ high order quantities, low capital
commitment through JIT - Quality Management
High quality ↔ intensive sampling, high appraisal costs - Sales
High availability of parts ↔ high stock, high capital commitment
Comprehensive product range ↔ high stock, storage costs
Name the five factors that influence the success of supply champions.
- Detailed and precise forecasting of costs
- Measurement of key performance indicators
- Transparent planning processes
- High proportion with weekly production (flexible production)
- Intensive informal contacts to customers (SC cooperation network)
a) Name the tasks of materials management
b) Describe the magic triangle of materials management
a) - Purchasing
- Scheduling
- Logistics
- Consignment
- Strategy, Monitoring and Controlling
- Determination of Consumption, Disposal and Recycling
b) Low material costs ↔ high delivery ↔ low capital commitment
